LONDON: Britain on Friday announced a massive 80 per cent hike in electricity and gas bills, waiting for a new leader in the country as a dramatically worsening survival crisis ahead of winter.
Regulator Offgame said its energy price cap, which sets prices for consumers who are not on a certain deal with their supplier, would rise to an average of £3,549 ($4,197) per year from the current £1,971 in October.
Worse is expected to come in January, when Ofgem will next update its cap, with average bills predicted to top £5,000 – or more.
“This increase reflects the continued rise in global bulk gas prices, which began to rise as the world was unlocked by the COVID pandemic and pushed to record levels by Russia gradually shutting gas supplies to Europe. Gone,” Offgame said.
The announcement sparked outrage from the charity, which said financially squeezed families faced “one of the most vulnerable Christmases” in years.
UK inflation is already in double digits and is projected to strike as much as 13 per cent in the coming months due to energy bills.
With industrial action on wage hikes, inflation is at its highest level since 1982, and the country is predicted to enter recession later this year.
Anti-poverty experts say a nearly doubling of the energy limit will leave millions of people facing fuel poverty, forcing them to choose between heating or eating.
“We know this price range increase will have a massive impact on homes across the UK and the difficult decisions consumers will now have to make,” said Offgame boss Jonathan Brearley.
“I speak to customers regularly and I know today’s news will be very worrying for many.”
– Cost of living largely dominates race between ‘zombie’ government – Lizzo truss and sage sunki Conservative prime minister to replace Boris johnson,
Political opponents have accused him of leading a zombie government and doing nothing to address the problem since his resignation in July.
Domestic and commercial consumers, energy suppliers and opposition politicians said immediate action was needed to avoid putting the most vulnerable in the most vulnerable positions.
A study from the University of York recently estimated that two-thirds of UK households are at risk of fuel poverty by next year.
But Johnson, who has been on leave twice in recent weeks, has promised to leave major financial decisions to his successor.
The winner will not be announced for the next 10 days.
Foreign Secretary Truss says she supports tax cuts on direct “handouts”.
She wrote in the Daily Mail on Friday that if she wins, her “immediate priority will be to cut taxes and put more money back in people’s pockets”.
Former finance minister Sunak has argued that tax cuts will worsen inflation, instead proposing further direct support.
The UK government has offered help so far, including removing £400 from every household’s energy bill later this year, as well as other targeted assistance to pensioners and people with disabilities.
Leaders of developed parliaments in Wales and Scotland have called for a halt to price hikes.
Scottish First Minister nicola sturgeon tweeted that the “increase must be rescinded” and that the government should agree with energy companies on a package to cover the cost.
its Welsh counterpart Mark Drakeford Backed calls from his Labor Party for a moratorium on bills and unexpected taxes on the oil and gas giant.
Gas comprises a large part of Britain’s energy mix, with millions of homes relying on gas-fired boilers for their heating.
– ‘Disaster’ – Anti-poverty think-tank The Resolution Foundation has called for “radical” measures to avert the “disaster” this winter, warning of “serious physical and financial damage to families across the UK” .
With many poor households relying on more expensive pre-payment meters, the foundation predicts that thousands could cut their energy completely.
It is calling for poor households to be offered a “social tariff” with a 30 percent discount.
French energy giant EDF has urged the government to double its energy aid package for UK customers, Philippe Comret, managing director for UK customers, told AFP the increase would be “disastrous”.
Adam Schorer, chief executive of fuel poverty charity Energy Action, also told Sky News that the government should double down on its support package and work with the regulator to introduce a social tariff for vulnerable households.
Regulator Offgame said its energy price cap, which sets prices for consumers who are not on a certain deal with their supplier, would rise to an average of £3,549 ($4,197) per year from the current £1,971 in October.
Worse is expected to come in January, when Ofgem will next update its cap, with average bills predicted to top £5,000 – or more.
“This increase reflects the continued rise in global bulk gas prices, which began to rise as the world was unlocked by the COVID pandemic and pushed to record levels by Russia gradually shutting gas supplies to Europe. Gone,” Offgame said.
The announcement sparked outrage from the charity, which said financially squeezed families faced “one of the most vulnerable Christmases” in years.
UK inflation is already in double digits and is projected to strike as much as 13 per cent in the coming months due to energy bills.
With industrial action on wage hikes, inflation is at its highest level since 1982, and the country is predicted to enter recession later this year.
Anti-poverty experts say a nearly doubling of the energy limit will leave millions of people facing fuel poverty, forcing them to choose between heating or eating.
“We know this price range increase will have a massive impact on homes across the UK and the difficult decisions consumers will now have to make,” said Offgame boss Jonathan Brearley.
“I speak to customers regularly and I know today’s news will be very worrying for many.”
– Cost of living largely dominates race between ‘zombie’ government – Lizzo truss and sage sunki Conservative prime minister to replace Boris johnson,
Political opponents have accused him of leading a zombie government and doing nothing to address the problem since his resignation in July.
Domestic and commercial consumers, energy suppliers and opposition politicians said immediate action was needed to avoid putting the most vulnerable in the most vulnerable positions.
A study from the University of York recently estimated that two-thirds of UK households are at risk of fuel poverty by next year.
But Johnson, who has been on leave twice in recent weeks, has promised to leave major financial decisions to his successor.
The winner will not be announced for the next 10 days.
Foreign Secretary Truss says she supports tax cuts on direct “handouts”.
She wrote in the Daily Mail on Friday that if she wins, her “immediate priority will be to cut taxes and put more money back in people’s pockets”.
Former finance minister Sunak has argued that tax cuts will worsen inflation, instead proposing further direct support.
The UK government has offered help so far, including removing £400 from every household’s energy bill later this year, as well as other targeted assistance to pensioners and people with disabilities.
Leaders of developed parliaments in Wales and Scotland have called for a halt to price hikes.
Scottish First Minister nicola sturgeon tweeted that the “increase must be rescinded” and that the government should agree with energy companies on a package to cover the cost.
its Welsh counterpart Mark Drakeford Backed calls from his Labor Party for a moratorium on bills and unexpected taxes on the oil and gas giant.
Gas comprises a large part of Britain’s energy mix, with millions of homes relying on gas-fired boilers for their heating.
– ‘Disaster’ – Anti-poverty think-tank The Resolution Foundation has called for “radical” measures to avert the “disaster” this winter, warning of “serious physical and financial damage to families across the UK” .
With many poor households relying on more expensive pre-payment meters, the foundation predicts that thousands could cut their energy completely.
It is calling for poor households to be offered a “social tariff” with a 30 percent discount.
French energy giant EDF has urged the government to double its energy aid package for UK customers, Philippe Comret, managing director for UK customers, told AFP the increase would be “disastrous”.
Adam Schorer, chief executive of fuel poverty charity Energy Action, also told Sky News that the government should double down on its support package and work with the regulator to introduce a social tariff for vulnerable households.